Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 210 170 Ending (units) 170 220 Variable costing net operating income $ 300,000 $ 269,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 190 190 Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 210 170 190 Ending (units) 170 Variable costing net operating income $ 300,000 $ 269,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 190 220 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing net operating income was $290,000. a. Did inventories increase or decrease during Year 4? Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4